NRNA to form Special Purpose Vehicle to operate Rs 10 billion Investment Fund

KAROBAR CORRESPONDENT

Wednesday, Jan 31, 2018

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KATHMANDU: The Non-Resident Nepali Association (NRNA) is planning to form a Special Purpose Vehicle to operate Rs 10 billion Infrastructure Fund."We have sought approval from the Securities Board of Nepal (Sebon) to operate NRN Infrastructure Fund of Rs 10 billion," said NRNA President Bhaban Bhatta. "The Fund will have investment from all including government, government entity, private sector, diaspora community and local, though the diaspora community will be given privilege to invest," he added. Nepali diaspora community has announced to set up an Infrastructure Fund worth Rs 10 billion to finance the infrastructure needs of the country in London last week in the presence of Nepal Rastra Bank (NRB) Governor Dr Chiranjibi Nepal."The promoters of the fund will inject the capital to set up the fund," Bhatta said, adding that they are willing to make huge investment in infrastructure sector. "Thus, if Sebon approves us to issue bonds, NRNA will sell it among diaspora community to collect the funds."On the occasion, portfolio adviser of the NRN Infrastructure Fund Anal Raj Bhattarai said that the Fund is willing to diversify its investment to ensure the regular fixed return for the investors. "The Fund will have investment from government, government entities like Hydroelectric Investment and Development Company and the diaspora community," he said, adding that the Fund also wants to make consortium financing under the leadership of various commercial banks in hydropower projects. "We can bring in billions of rupees from the diaspora community by selling bonds.He also said that the NRNA office bearers' have asked capital market regulator for its approval to bring in investment. Sebon has been drafting the Alternative Investment Regulation Funds Regulations to regulate such funds, equity investment and venture capitalDiscussing with the Society of Economic Journalists of Nepal (Sejon) here on Tuesday, he informed that discussions were underway with the government bodies for setting up the fund. On the occasion, NRNA President Bhatta also listed the newly elected committee's work in the last almost 100 days. The newly elected NRNA committee – in the last three months – has expedited construction of the Laprak Model Settlement in Laprak of Gorkha. The settlement was destroyed by the Gorkha Earthquake of April 25, 2015. A total of 327 houses are being reconstructed in Laprak.According to him the NRNA is also constructing a park on 32 ropanis land on the bank of the Bagmati river at Shankhamul at an estimated cost of Rs 22.5 million, apart from completing the NRNA headquarters in Baluwater.